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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to point out the valiue of credit cards in a Monarch type situation?

42 replies

PoppyPopcorn · 02/10/2017 13:14

I have read time and time again sbout people who take pride in not having credit, paying for everything with their debit cards or cash.

But when something happens like the Monarch situation, your credit card company will refund you. Quickly. No questions asked. Travel insurance probably won't, and although you can claim on your debit card, it's a lengthy process. Same thing applies for any other large purchase (sofa, computer equipment etc) which you make and the company goes bust before you receive your goods.

OP posts:
FuzzyOwl · 02/10/2017 13:17

This is true but for some people, they end up paying lots in interest because they don't pay the balance in full immediately and it is a way of ending up in debt.

Travel insurance should pay and it is something that we are all responsible for checking we are covered for when taking out a policy.

PinkHeart5913 · 02/10/2017 13:21

Me & Dh never use to have a credit card but had to get one when going abroad as the car hire company only wanted credit cards, since then we always use the credit card for booking flights/holidays/concert tickets etc and then just pay it straight off at the end of the month

Original poster
PoppyPopcorn · 02/10/2017 13:21

Only if your insurance specifically covers airline failure - lots don't.

OP posts:
Rainallday · 02/10/2017 13:22

You are covered under atol protection if the flights were bought as part of a package holiday. It should say atol protected somewhere on the paperwork.

topicOfTheDay · 02/10/2017 13:24

We use credit cards for almost all purchases. We accrue air miles, petrol points, even Waitrose / John Lewis points with the groceries.

Protection as well as benefits.

All it takes is a little self-control and to only spend what you can afford.

SurfingKitten · 02/10/2017 13:25

The BBC has already confirmed [[How will Monarch customers be affected?
www.bbc.co.uk/news/business-41463787
here]] that the vast majority of people will be refunded.

Those who pay by credit card need to spend £100 or more to qualify to claim back the way the OP states.

Original poster
PoppyPopcorn · 02/10/2017 13:25

I get that lots of people don't want "debt". But if you've got the money waiting in your bank account to pay your flights for your holiday, sticking it on a credit card and paying it off a month later is just the same as using a debit card.

Also if you order a sofa from one of those "buy now and have it for Christmas" people, or order and pay for double glazing to be installed in 6 weeks time you're unlikely to have any insruance should the company go bust.

OP posts:
ilovesooty · 02/10/2017 13:28

Not all people are even eligible for a credit card.

coddiwomple · 02/10/2017 13:29

don't forget that it's more expensive to pay by credit card than by debit. It adds up, and not everybody can afford the extra amounts.

I never use a debit card online, it feels unsafe, but I can understand why others do.

topicOfTheDay · 02/10/2017 13:31

don't forget that it's more expensive to pay by credit card than by debit

How so?

MovingOnUpMovingOnOut · 02/10/2017 13:31

My travel insurance covers airline failure. The cover is provided by International Passenger Protection and they are the industry default provider. I paid extra for this cover.

They won't pay out. Shower of bastards that they are. I'll get my money back for my outward flight via the credit card but I don't have £200 extra to buy replacement flights (that's what flights from same airport, same date cost with Ryanair) and they won't cover the cost of my return flight because I can get there to use it.

It's 4.5 hours away by plane. Unless I can pull £200 out of my arse to book flights or learn to fucking fly I can't get there to use my return flights.

Luckily I can cancel the hotel. Not sure about airport car parking and overnight hotel booking yet.

Absolutely cunts at IPP.

MovingOnUpMovingOnOut · 02/10/2017 13:32

But I feel much better for this patronising thread telling people to use a credit card and get insurance... like I did.

I even read all 80 pages of policy documents.

Original poster
PoppyPopcorn · 02/10/2017 13:33

don't forget that it's more expensive to pay by credit card than by debit

Sometimes companies - not just airlines - will charge an extra handling fee when you pay by credit card. Not all retailers and companies do this. You have to weigh up the charges against the protection it gives you.

OP posts:
MrsMotherHen · 02/10/2017 13:33

unfortunately not all of us have, want or can even get a credit card.
Unfortunately I am one of these but luckily we are atol protected so will get a refund.

MrsMotherHen · 02/10/2017 13:34

unfortunately not all of us have, want or can even get a credit card.
Unfortunately I am one of these but luckily we are atol protected so will get a refund.

Original poster
PoppyPopcorn · 02/10/2017 13:36

Is the issue moving that you have, for example, booked to fly out to Greece with Monarch and back with Easyjet or anohter airline?

OP posts:
onceisok · 02/10/2017 13:37

I'm having to get a credit card even though I don't want to.

Dh and I are travelling and getting a lot of hire cars and none of the rental companies will let us have a car on a debit card!!!

AngrySad

CryingShame · 02/10/2017 13:38

topicofTheDay lots of websites charge an admin fee for credit cards but not for debit cards, so you pay £2.50 or £3 extra for using a credit card. The last one I used that did so was the trainline site.

coddiwomple · 02/10/2017 13:39

don't forget that it's more expensive to pay by credit card than by debit

How so?

I can't remember, I think it's because you can cancel the transaction but it always cost a bit more. At least It always has every time I booked a train or flight ticket. It would be (slightly) cheaper to pay by debit.

existentialmoment · 02/10/2017 13:41

Some of us are well aware of the advantages of credit cards but are not able to actually get one.
So thanks Hmm

Wellyboots86 · 02/10/2017 13:45

Used to work in a bank as a manager, any payment over £100 will be covered in this scenario

Wellyboots86 · 02/10/2017 13:46

On a credit card I mean

SurfingKitten · 02/10/2017 13:47

don't forget that it's more expensive to pay by credit card than by debit

How so?

It is not always the case but sometimes there is a credit card surcharge and you pay a fixed amount extra to pay by credit card or a percentage, which often makes it an unreasonable extra on your budget.

However, to qualify for Section 75 of the Consumer Credit Act, you only need to have paid for part of the cost on your credit card. So it makes sense to put £100 on and pay the rest separately.

RaeCJ82 · 02/10/2017 13:48

YANBU. I understand people not wanting to get in debt but you just need to exercise a bit of self control and pay it off as you go. Plus if you have a cashback card then you'll make money.

MovingOnUpMovingOnOut · 02/10/2017 13:48

That is what I have done but I should still have been covered. From my policy documents:

Up to £1,500 for other lost costs or additional costs that result directly because of the end supplier’s insolvency

Definition of "end supplier" is as follows:

An additional definition applies to this section:
End supplier
The actual provider of your transport, accommodation, activity or excursion.
n Transport providers are scheduled airlines, ferry companies, cruise companies, coach companies, rail companies, car rental companies.
n Accommodation providers are the owners of hotels, villas, cottages, mobile homes, caravans, campsites.
n Activities or excursion providers would include companies running safaris, theme parks, tours.

to point out the valiue of credit cards in a Monarch type situation?